Tow Truck Insurance: How To Cut Costs With Risk Management

Although tow truck insurance rates average around $4,000 to $5,000, policy premiums can spike up to $15,000 per annum for high-risk truckers. Insurers generally charge at-risk clients more. As such, minimize your associated risk factors to improve your overall insurability as a trucking service provider.

Proper risk management plays a crucial role in keeping tow truck insurance costs down. Hire truckers with a good driving record, maintain your credit score, avoid getting into road accidents, and keep your tow trucks safe 24/7. Also, avoid hauling high-value cargo. Specializing in towing luxury vehicles drives up your tow truck and on-hook insurance premiums significantly.

Risk Management Tips to Minimize Tow Truck Insurance Costs

Bolster your risk management strategy with the following straightforward, actionable tips:

• Opt to avoid towing high-value vehicles. Towing companies that haul luxury, high-value cars often end up paying several grand more for on-hook coverage.
• Keep your tow trucks locked at all times. Invest in high-quality locks to prove to insurance providers that you take security seriously.
• Hire competent truckers. Insurers will charge you more if your truckers have poor driving records and multiple traffic violations.
• Maintain a solid financial standing. Keep all your financial records and maintain high credit scores to ensure that you have a stable, reputable company.
• Get a front and dash camera. Have a camera recording your operations 24/7 to ensure that you have sufficient evidence if an accident occurs.

Avoid skimping on insurance. Keeping your premiums to a minimum reduces your monthly expenses, but operating underinsured compromises your long-term continuity plans.

Remember: road accidents cost far more than any insurance policy. In the worst case, property damage and bodily injuries could set your business back by over $150,000.

Are you stuck between the different insurers in your area? Assured Standard has you covered! Use our in-depth comparison review of the top five truck insurance companies as a starting point.